Understanding Auto Insurance

What is the primary purpose of auto insurance?

• To comply with legal requirements only

• To provide financial protection in case of accidents, theft, or damage

• To cover the cost of vehicle maintenance

• To improve driving skills

What is a deductible in the context of auto insurance?

• The amount paid to the insurance agent

• The amount you pay out of pocket before insurance covers the rest

• A fee to process insurance claims

• The minimum amount your insurer will cover

What does the liability coverage in auto insurance typically cover?

• Repairs and medical costs for the other vehicle if you're at fault

• Medical costs for injuries to passengers in your vehicle

• Theft or vandalism of your vehicle

• Repairs to your vehicle only

Why might someone choose a higher deductible on their auto insurance policy?

• To increase the coverage limit

• To reduce the monthly premium

• To avoid filing a claim

• To extend the policy term

Which coverage helps pay for damages to your vehicle in non-accident situations?

• Personal injury protection

• Comprehensive coverage

• Collision coverage

• Liability coverage

What does uninsured motorist coverage protect you from?

• Legal fees from traffic violations

• Expenses from routine vehicle inspections

• Costs from an accident with a driver who has no insurance

• Damage to your vehicle from natural disasters

What is the benefit of having comprehensive coverage in addition to liability coverage?

• It is required by law in all states

• It covers non-accident related vehicle damage

• It reduces the policy premium

• It covers all types of vehicle damage

What should you consider when deciding on the limits of your liability coverage?

• The number of drivers in your household

• The minimum state requirements and your personal assets

• The color and model of your vehicle

• The yearly mileage of your vehicle

How do consumer reports benefit potential insurance buyers?

• They list the best vehicle models to insure

• They provide discounts on premiums

• They offer insights into the reliability and service quality of insurers

• They give legal advice on filing claims

What is the main reason to choose a well-established insurance company over a newer one?

• Older companies have lower premiums

• They generally offer more personalized services

• They are more likely to provide reliable coverage and service

• They require less documentation for claims